Govt improves monthly pension for retirees from 50 to 67 pc

DODOMA: THE government has said that it has improved the monthly pension for retirees from 50 per cent to 67 per cent through the new pension regulation which came into effect on July 1 2022.

Deputy Minister of State in the Prime Minister’s Office (Labour, Youth, Employment and Persons with Disability) Patrobas Katambi told the National Assembly here on Monday when responding to a basic question by Segerea MP Bonnah Kamoli (CCM).

In her question, the MP wanted to know when will the new scheme for monthly pension come into effect.

Responding, Mr Katambi said that the government gazette No 357 of May 20, 2022 announced the new regulation which improved the monthly pension.

He said the regulation was prepared by involving all important stakeholders including government, workers and employers with the aim of   making the improvement by considering members’ benefits in order to make the social security schemes sustainable.

In her supplementary question, Ms Kamoli said that there are some retirees in Mainland who were yet to be paid their benefits through the new scheme while their colleagues in Zanzibar have started   enjoying the new payments.

Responding, Katambi said that social security schemes is not the union matter, noting that the government is making an evaluation which will help to get a report on sustainability of the social security schemes and whether the benefits rate has increased.

He said the three- year evaluation is about to be completed.

In another supplementary question, Ngara MP Ndaisaba Ruhoro (CCM) said that for a long time, retirees have been complaining about the pension formula because they are being paid peanut of their total servings lump sum upon retiring.

The MP   wanted to know the government plans to make sure that it improves the pension formula to increase the amount paid in lump sum upon retiring.

The deputy minister said that President Samia Suluhu Hassan has showed her commitment to improve workers’ welfare despite the effects of Covid 19.

He said that, previously workers were paid 25 per cent of their total savings in lump sum upon retiring, but to date the amount has increased to 33 per cent while monthly pension has been increased from 50 per cent to 67 per cent.

The new pension scheme came into effect after the amendment of Section 25A of the Social Security Benefit Schemes Regulations.

The development followed the merger of five public pension schemes into one – the Public Service Social Security Fund (PSSSF), which is now one of two social security funds together with the National Social Security Fund.

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